Which of the Following Is NOT True of Restrictive Covenants

question 14

Multiple Choice

Which of the following is NOT true of restrictive covenants?

• A)They sometimes require borrowers to maintain the value of collateral offered to the lender.
• B)They increase the marketability and liquidity of loans.
• C)They sometimes require a borrower to maintain a certain minimum level of net worth.
• D)They sometimes limit a borrower's risk taking.

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Definitions:

Community

A community is a group of individuals who share common interests, values, or geographical location, and interact with each other to fulfill mutual needs.

Potential Members

Individuals who may become part of a group, organization, or community based on certain qualifications or criteria.

Ideal Size

The optimal size or magnitude of something, such as a group or organization, that facilitates its best performance or function.

Objectives

are specific, measurable goals that an individual or organization aims to achieve within a set timeframe.